Kolkata-based customer experience and artificial intelligence data infrastructure provider Fusion CX completed a high-profile secondary share transaction worth ₹120 crore ahead of its public issue opening. Institutional heavyweight Kotak Mahindra Life Insurance, alongside prominent ace investors Ashish Kacholia and Mukul Agrawal, acquired shares at the upper end of the public issue’s price band.
Secondary Share Transaction Structure
The pre-IPO secondary placement was executed on 9 October 2026. Promoter entities P N S Business Private Ltd and Rasish Consultants Private Ltd offloaded 41.52 lakh equity shares, representing 3.19% of Fusion CX’s pre-offer equity share capital on a fully diluted basis.
The transaction was executed at ₹289 per share, matching the exact upper bound of the public offer’s price band. This pricing demonstrates that incoming institutional and high-net-worth investors were willing to participate without seeking any valuation discount.
Pre-IPO Placement Allocation Breakdown
The ₹120 crore secondary offload was distributed among several institutional and high-profile private investors:
- Kotak Mahindra Life Insurance: Picked up 17.30 lakh shares valued at ₹50.00 crore through an institutional placement.
- Ashish Kacholia: Acquired 12.11 lakh shares worth ₹35.00 crore in a personal capacity and via Bengal Finance and Investment.
- Sanshi Fund-I (Mukul Agrawal): Secured 8.65 lakh shares valued at ₹25.00 crore through an Alternative Investment Fund vehicle.
- Bhansali Fincom & Others: Bought approximately 3.46 lakh shares amounting to roughly ₹10.00 crore via HNI and corporate allocations.
Public Issue Parameters and Timeline
The main public offering totals ₹702 crore and is scheduled to run from 14 October 2026 to 16 October 2026, preceded by the anchor investor bidding window on 13 October 2026.
- Price Band: ₹275 to ₹289 per equity share.
- Target Valuation: Approximately ₹4,200 crore calculated at the upper price band.
- Issue Composition: A fresh issue of up to ₹500 crore and an Offer for Sale (OFS) of up to ₹202 crore by promoter selling shareholders.
- Post-Issue Promoter Holding: Expected to remain at 77.35% on a fully diluted basis at the upper end of the price band.
Utilization of Fresh Issue Proceeds
Out of the ₹500 crore raised through the fresh issue component, Fusion CX has outlined targeted capital allocation for debt reduction and technological expansion:
- Debt Repayment: ₹275 crore is designated for prepaying or repaying outstanding borrowings of the parent company and its subsidiaries.
- AI and IT Upgrades: ₹61 crore is allocated as capital expenditure for step-down subsidiaries Omind Technologies Inc. and Omind Technologies Pvt. Ltd. to develop proprietary tools such as Arya and MindVoice.
- Strategic Initiatives: The remaining net proceeds are set aside for organic development, inorganic acquisitions, and general corporate purposes.
Business Footprint and Financial Performance
Established in 2004 by Pankaj Dhanuka and Kishore Saraogi, Fusion CX manages 40 delivery centers globally. The enterprise delivers omnichannel customer interaction management and AI data infrastructure to clients across retail, fintech, logistics, and healthcare sectors, including 22 Fortune 1000 brands.
The company demonstrated strong financial growth for the fiscal year ending 31 March 2026:
- Revenue from Operations: Increased by 37% year-on-year to ₹1,851.83 crore, compared to ₹1,352.03 crore in FY25.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Reached ₹329.87 crore, reflecting a 66.8% expansion from ₹197.78 crore in FY25.
- Profit After Tax (PAT): Surged by 128.5% to ₹169.84 crore from ₹74.31 crore in the previous fiscal year.
- Balance Sheet Position: Total borrowings declined from ₹81.93 crore to ₹58.73 crore as of 31 March 2026, while total assets expanded to ₹1,385.15 crore.
Market and Business Analysis
Market Impact and Investor Sentiment
The participation of high-profile investors such as Ashish Kacholia, Mukul Agrawal, and Kotak Mahindra Life Insurance in a pre-IPO placement at the upper end of the price band acts as a significant confidence booster for retail and institutional participants. In primary market issuances, marquee backing often signals institutional validation of the company’s growth narrative and financial governance. Furthermore, executing the secondary offload at ₹289 per share demonstrates that institutional buyers are comfortable absorbing shares at peak valuation levels without demanding a discount, reflecting robust near-term demand for the issue.
Company and Financial Trajectory
Fusion CX’s financial metrics showcase a scalable business model supported by international delivery infrastructure and enterprise-grade clients. The company’s revenue growth of 37% combined with a 66.8% rise in EBITDA indicates strong operating leverage. More importantly, the jump in PAT by 128.5% to ₹169.84 crore points to improving cost efficiencies and margin expansion. The reduction in total borrowings from ₹81.93 crore to ₹58.73 crore ahead of the public issue further strengthens the balance sheet, which will be deleveraged even further using proceeds from the fresh issue.
Valuation and Capital Efficiency
At the upper price band of ₹289, the company targets a market valuation of roughly ₹4,200 crore. When evaluated against the FY26 net profit of ₹169.84 crore, the valuation reflects the growth expectations tied to artificial intelligence integration and omnichannel CX infrastructure. The allocation of ₹61 crore toward proprietary AI tools such as Arya and MindVoice highlights management’s focus on transitioning from traditional customer support services toward higher-margin, technology-driven data infrastructure solutions.
| Financial Metric | FY25 (₹ Cr) | FY26 (₹ Cr) | Change (%) | Analysis |
|---|---|---|---|---|
| Revenue from Operations | 1,352.03 | 1,851.83 | +37.0% | Steady top-line expansion driven by global enterprise client acquisition. |
| EBITDA | 197.78 | 329.87 | +66.8% | Operating profitability scaled faster than revenue, showing margin improvement. |
| Profit After Tax (PAT) | 74.31 | 169.84 | +128.5% | Net profit more than doubled, indicating enhanced bottom-line conversion. |
| Total Borrowings | 81.93 | 58.73 | -28.3% | Active debt reduction ahead of primary capital raising. |
| IPO Parameter | Value / Details | Analysis |
|---|---|---|
| Issue Size | ₹702 crore | Balanced mix of growth capital and promoter liquidity. |
| Price Band | ₹275 – ₹289 | Determines a target valuation of ~₹4,200 crore. |
| Fresh Issue | Up to ₹500 crore | Primarily directed toward debt reduction and AI technology upgrades. |
| Offer for Sale (OFS) | Up to ₹202 crore | Promoter offload leaving post-issue holding at 77.35%. |
Key Takeaways
- Fusion CX completed a ₹120 crore pre-secondary placement on 9 October 2026 at ₹289 per share.
- Participants in the pre-IPO round include Kotak Mahindra Life Insurance, Ashish Kacholia, and Mukul Agrawal’s Sanshi Fund-I.
- The main public issue opens from 14 October 2026 to 16 October 2026 with a price band of ₹275 to ₹289.
- The ₹702 crore issue comprises a fresh issue of up to ₹500 crore and an OFS of up to ₹202 crore.
- For FY26, revenue reached ₹1,851.83 crore, EBITDA expanded to ₹329.87 crore, and PAT surged to ₹169.84 crore.
- Proceeds from the fresh issue will target debt repayment of ₹275 crore and proprietary AI product investments of ₹61 crore.
Frequently Asked Questions
Fusion CX completed its pre-IPO secondary share transaction on 9 October 2026.
The pre-IPO secondary placement amounted to ₹120 crore.
Kotak Mahindra Life Insurance, Ashish Kacholia, and Mukul Agrawal (via Sanshi Fund-I) participated in the pre-IPO placement.
The price band for the public issue is set between ₹275 and ₹289 per equity share.
The public issue is scheduled to run from 14 October 2026 to 16 October 2026, with the anchor book opening on 13 October 2026.
The total IPO size is ₹702 crore, comprising a fresh issue of up to ₹500 crore and an Offer for Sale of up to ₹202 crore.
The company has earmarked ₹275 crore from the fresh issue proceeds to prepay or repay outstanding borrowings.
For FY26, Fusion CX reported revenue from operations of ₹1,851.83 crore, EBITDA of ₹329.87 crore, and a Profit After Tax of ₹169.84 crore.
